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Paypal - AI Stock Analysis

Analysis generated July 29, 2025

PayPal Holdings, Inc. (NASDAQ: PYPL) is a leading technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its service allows users to make payments, send and receive money, and manage their financial needs seamlessly through its platform, popular for its robust security measures and ease of use.

Fundamental Analysis

The revenue for the last quarter was $7.79 billion, representing a decrease of 6.87% compared to the previous quarter. Although this is concerning in the short term, there is a glimmer of positivity with a 1.19% increase compared to the same quarter last year, indicating steady year-over-year growth.

Net income for the last quarter was $1.29 billion, reflecting a solid increase of 14.81% compared to the previous quarter and a significant 44.93% increase year-over-year. This demonstrates strong operational effectiveness and profitability improvements.

The EBITDA for the last quarter stood at $1.95 billion, which is an 11.10% rise from the previous quarter and a 25.06% increase compared to the same period last year. The increasing EBITDA highlights improved earnings performance and operational efficiency.

The current price-to-earnings (P/E) ratio is 17.52, which falls within a normal range, indicating that PayPal's stock is reasonably valued in comparison to its earnings.

However, insider selling noted in recent months may raise a red flag, suggesting a potentially bearish signal from within the company.

Technical Analysis

Today’s stock price is $71.70, showing a decrease of 2.63% from a month ago, which could be a concern for short-term investors. In contrast, the price has increased by 12.03% compared to a year ago, suggesting a positive long-term trend.

The overall trend appears to be bearish. The current Simple Moving Average (SMA) for the last 10 days is $76.33, which is marginally lower than the previous SMA10 of $76.58, indicating potential continued downward price movement.

The Relative Strength Index (RSI) is 53.9, suggesting a neutral trading condition without any strong buy or sell signals at this moment.

Alternative Data Analysis

In terms of job postings and employee sentiment, PayPal has 980 open positions, up by 9% in the last couple of months, indicating a potential expansion phase which is generally a healthy sign for the company.

Customer acquisition numbers look strong with an estimated 612 million visitors to their webpage, which is up by 9% over the past few months. Additionally, the estimate of 100,000 users downloading their mobile apps daily, up by 15%, underscores robust growth in user base engagement.

Customer engagement metrics reveal that PayPal has 680,000 followers on Instagram and 1.1 million followers on Twitter, although these numbers have remained stable without significant fluctuations recently.

According to AltIndex’s AI score, which assesses a company’s stock price based on fundamental, technical, and alternative data analysis, PayPal has an AI score of 54, which is a hold signal.

Conclusion and Recommendation

Taking into account the mixed signals from fundamental, technical, and alternative data analyses, PayPal appears to be in a period of modest growth with solid long-term prospects. Despite recent insider selling and a slightly bearish trend in technical indicators, the company's financial health, strong net income, and growing user base warrant cautious optimism.

The recommendation would be to hold the stock. Monitoring for continued signs of growth and improvement in internal and external indicators would be crucial for reassessing this position in the future.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.